I. Call to Order Dr. Kormanik called the meeting to order at 3:17 p.m. and welcomed senators
and guests.

Approval of Minutes The minutes of the August 27, 1998 special meeting were approved following an
editorial correction.

II. Administrative ReportDr. Jim Pitts gave the Administrative Report.Salary Although the legislature has not approved a budget, a 3 percent merit increase
and a one-time bonus of 1 percent have been approved. The increases are retroactive
to July 1, 1998.

Chancellor Reed Announces Retirement Chancellor Reed stated that after careful deliberation, and consideration of the
fact that she will have completed her fifth year as Chancellor next June, she has
decided to announce her intent to retire effective June 30, 1999. She wants this to be a
smooth transition and she feels that Rob Cranford, Chair of UNCA's Board of Trustees,
will do an excellent job as Chair of the Search Committee. He will be in contact with
Gregg Kormanik to ask the Senate to choose the faculty representatives to the search
committee. President Broad will charge the search committee on October 22.
Chancellor Reed added that this is a bittersweet time; she loves UNCA so it hasn't been
an easy decision to leave.

Dr. Kormanik thanked Chancellor Reed on behalf of the faculty for her leadership
of UNCA and for her work with the Foundation and capital campaign. He stated that
Dr. Reed has been a tremendous asset and we're sorry to see her leave. The Senate
wished her the best. A round of applause followed.

Dr. Kormanik stated that Rob Cranford, Vice Chair of the UNCA Board of
Trustees, had contacted him and asked that he provide five faculty to serve as
representatives on the search committee. The Executive Committee will discuss how to
proceed with the selection of these representatives.

Dr. Bruce thanked Chancellor Reed for conveying her announcement personally.
Dr. Reed added that UNCA is extremely attractive right now and identifying the next
leader will be easier than we might think.

Dr. Reed explained her reasons for making the announcement at this time. She
wanted to protect the current capital campaign and was involved with solicitations that
needed to be completed prior to her announcement. She also wanted to ensure that
we could complete the search this year. She chose the eve of Founder's Day because
she wanted to emphasize the point that it takes all of our contributions to make a fine
university; there is a continuum of leadership, with successors building upon their
predecessor's foundations. This is also a logical time, as it will give her an opportunity
to communicate with a number of audiences. Dr. Reed pledged that she will do
everything she can to make this a positive transition.

As background information, Ms. Nelms explained that the Faculty Assembly is an
advisory body that can speak directly to President Broad. We are one of the few state
systems where a group of faculty has this input.

The Faculty Assembly has never had a clearer vision of UNCA as a liberal arts
school, and they have never seen us as distinctly different as they do now. This is a
tribute to Chancellor Reed.

Ms. Nelms reported that President Broad is very concerned about the UNC
system's extreme weakness in the area of benefits and she is making this clear to the
legislature. She is also concerned that in the recent past the legislature has been
willing to dispense money for continuing programs but they tend to make it one-time
money with no promise of additional funding.

The Tuition Task Force, of which Bruce Larson is an integral part, has
recommended that the Board of Governors assume the responsibility of setting tuition
as they are closer to the universities and the students. Because the State charge is to
keep tuition close to zero, the Board of Governors has voted on no tuition increases.
As a result, the legislature has basically set tuition, because the BOG has not acted.

A number of administrators within the system have attributed changes they
wished to make as mandated by General Administration, when, in fact, they were not.
For example, at the present time GA is not requiring any institution to grow. However,
they are making growth very attractive as evident in the new funding model which
rewards growth.

In response to questions, Ms. Nelms replied that the Tuition Task Force's
recommendation was made in response to Chapel Hill's Business School setting their
own tuition and going directly to the legislature. The Task Force found that no funding
request should be addressed in that fashion.

Chancellor Reed explained that currently in-state tuition goes to the State and
institutions receive an appropriation. If this practice continues, UNCA may not want any
changes in the tuition. However, if tuition comes directly to the institution, she
suggested we consider setting our tuition so that it matches Chapel Hill for
undergraduates. Because UNCA is unique, we will have more latitude than other
universities in aligning ourselves with the premier flagship institution.

Ms. Nelms stated that the committee Bruce Greenawalt serves on made clear to
the President that institutions in the western part of the state no longer receive the
same benefits as the rest of the state with the unavailability of HMOs.

In response to Dr. Bruce's question regarding benefits, Ms. Nelms stated that
retirement, medical, and dental benefits were grouped together. She did not know if
sabbatical leave was included in the benefits under discussion.

APC 1 allows students to take ECON 102 before ECON 101 or transfer in the
equivalent of ECON 102 without transfer credit for ECON 101. This change will allow
students to alter the order in which they take the required ECON sequence in
Management.

APC 2 writes into the Catalog our policy regarding independent individual
courses. The statement is a slight variation from what already appears in the Faculty
Handbook. This insertion places it in a more visible and accessible location and
informs students of the procedure.

Motion to adjourn early Dr. Bruce made a motion to adjourn the meeting at 4:20 p.m. in order to attend
Chancellor Reed's announcement in Karpen Hall. Dr. Pons seconded the motion,
which passed unanimously.

VI. Institutional Development Committee/University Planning Council Report:Dr. Peter Caulfield gave the Institutional Development Committee/University
Planning Council report. At the UPC meeting the following issues were discussed:Academic Affairs The UPC discussed Academic Affair's proposal to change two position titles. Dr.
Caulfield received email from a faculty member asking if Department Chairs would
report to Dr. Cochran instead of Dr. Pitts, and if faculty issues will now go through Dr.
Cochran. The UPC is requesting more specificity to address some questions and
concerns.

Reassigned Time The UPC discussed reassigned time and found it to be consistent with UNCA's
mission to promote teaching and scholarship. The mission statement states that UNCA
will support, encourage, and foster scholarship.

Space Utilization Dr. Gravely gave a report on space utilization. Consultants hired by GA are
studying the equity of capital construction in the UNC system. They are in the first
phase, which is to analyze the use and needs of each campus in terms of space. The
UPC had a constructive conversation with the team while they were on campus.

New Funding Model Dr. Gravely reported on the new UNC system Student Credit Hour (SCH)
enrollment funding model and concluded that the change is generally to UNCA's
advantage. He connected it to enrollment projections and showed how UNCA would
receive fewer faculty positions under the old model.

The UPC discussed extension and distance learning, particularly in relation to
the new funding model. Formerly extension learning was solely self-supporting. Under
the new funding model UNCA will receive state appropriations ranging from $24K-$40K
for each course of 20 students taught as extension. Dr. Gravely projected the courses
over the next three years in extension learning: In 1998-1999, nine courses could
generate 225 student credit hours; In 1999-2000, 22 courses could generate 770
student credit hours, and in 2000-2001, 25 courses could generate 995 student credit
hours.

The UPC discussed the report of the Task Force that was appointed by Dr. Pitts.
Merritt Moseley and Kern Parker are members of the Task Force. Dr. Caulfield
summarized the concerns, questions, and recommendations of the Task Force to the
UPC. Dr. Caulfield stressed that extension learning and distance learning are very
different. In some ways, it will be easier for UNCA to stay within our mission guidelines
through extension learning rather than distance learning. Extension learning requires a
UNCA faculty member to offer a course at another location and faculty can create the
kind of classroom environment that we're able to create here. The Task Force was not
sure what it would mean to create a virtual environment through distance learning.

Mission Equity Proposal Update Dr. Gravely gave an update on the mission equity proposal presented to GA.
The proposal compared UNCA to our peer institutions, as identified and accepted by
GA, and to the funding our peers receive. UNCA received less funding than our peers
in every area. Based on GA's advice, UNCA is requesting $750K.

Strategic Plan Update The strategic plan update was distributed during the UPC meeting.

Questions/Comments Dr. Kormanik asked Dr. Caulfield to comment on the notion that UNCA has
excess classroom space. Dr. Caulfield replied that the classrooms are very crowded
from 9:00 a.m. to 3:00 p.m., but there is a lot of underutilized classroom space during
the remaining hours. There is a shortage of office space.

Dr. Pitts stated that the lead consultant, Eva Klein, asked where UNCA wanted
to be in 25 years. Some questions asked by the consultants could have powerful
implications if they are even partially implemented. One question is whether academic
buildings should be built for large aggregations of people if it appears that learning
works best where one can facilitate discussions in smaller numbers. A major theme
was the need for creative financing for the system and the need to gain the authority to
set tuition differentially. The consultants were raising broad questions about facilities
construction and utilization relative to the mission.

Mr. Dunning asked if the Senate would receive a copy of the report and have an
opportunity to make comments on the findings. Dr. Pitts replied that the consultants
were accountable to the BOG or the legislature and the report will go to them. Dr.
Gupton added that Ms. Klein was an advocate for us and the university system as a
whole, and the process was mandated by a bill passed by the legislature. Ms. Klein
was very knowledgeable about the numbers and what they meant qualitatively.

VII. Faculty Welfare and Development Committee Report
Dr. Marcia Ghidina gave the Faculty Welfare and Development Committee
Report. Post Tenure Review Election Results Tucker Cooke, Bill Sabo, Dee James, and Jim Petranka were elected to serve on
the Post Tenure Review Committee. Because this is a new committee, the highest
vote-getters will serve a two-year term. Tucker Cooke will serve a two-year term. Bill
Sabo and Dee James tied, so they will determine which one will serve the two-year
term and which one will serve the one-year term. Jim Petranka will serve a one-year
term.

Update on Reassigned Time Dr. Rizzo stated that FWDC is trying to determine what cluster of issues is
most important to the faculty as they deliberate on the reassigned time policy. She
gave a summary of discussions which included email, the faculty meeting sponsored
by FWDC, and the faculty forum held by David Peifer.

Dr. Rizzo noted the following five categories:

1- reasons why reassigned time must be preserved. On these issues there
seems to be a widespread consensus.

2- availability of reassigned time. There are some differences of opinion.
There seems to be a general spectrum of opinion that it should be either a right
available to all faculty, or there should be some kind of competition for it. Most views
seem to fall toward the end of the spectrum that guarantees it as a right.

3- distribution of reassigned time. There is a fair amount of agreement that
distribution should remain within individual departments. Further, it is thought that
the policy we are working on now should be generated from the Senate, with
perhaps administration input. Generally, faculty believe distribution should be even across
departments, but there is disagreement because different departments have
different needs.

4- accountability. There is a widespread consensus that we already have
sufficient mechanisms for accountability, at least for the individual faculty member's
use of reassigned time. How department chairs allot that reassigned time needs
further investigation and perhaps more structuring.

5- related issues that the committee has not been charged to deal with.

One related issue is the use of adjuncts. This is a very important issue for
faculty and is related to reassigned time. However, the Task Force agreed at their
last meeting that a separate body needs to address this issue.

Another related issue is contact hour equivalent (CHE). This showed up
several times in faculty comments and we should be more consistent within the UNC
system. Again, the Task Force was not specifically charged to deal with this issue. The last issue is whether reassignment should be derived from service and
scholarship. The Task Force agreed that they are principally concerned with
reassignment from teaching to do various other activities.

Dr. Bruce added that the Council of Chairs recommended that the reassigned
time policy review be conducted by the Senate through the FWDC, with input from
all helpful and concerned parties. The administration and the FWDC concurred,
feeling that this is an issue that is close to the heart of many faculty. The widest
faculty ownership of the eventual revisions is very important and the Senate is the
best way to get that. Their committee is small and they will probably seek
participation from another senator or two, or Council of Chair members were
perfectly willing to help us as they seek a breath of perspective on these issues.

The FWDC has been gathering data on standard course loads and course
reduction policies that two groups of institutions, the GA peers, a group of
institutions that GA compares us to, and also COPLAC, the Council of Public Liberal
Arts Colleges. Thanks to Becky Elkin in Institutional Research, the Task Force has
received information from twelve of those institutions. They are also getting some
information on the standard teaching loads at the other UNC institutions for tenure
track faculty, for department heads. Although, as they have been learning, there is
more information under the surface of those numbers.

At this time they have not experienced any pressure from Academic Affairs to
come up with a revised policy that reduces the amount of reassigned time or which
delegates decision making to Academic Affairs. Administrators also agreed that it
could be difficult to adhere to the November 1 timetable, given the amount of work to
do. The committee would like to complete their report to the Senate this semester.
Dr. Bruce is the Chair of the Task Force.

Dr. Rizzo asked Dr. Cochran to share what the Task Force covered at their last
meeting. Dr. Cochran replied that the spring schedule has been finalized as best as
feasible prior to preregistration. It appears we will be able to offer the curriculum we
need to and spend about $222K on adjuncts to supplement that curriculum. We have
been able to address the most critical problem, which was an apparent budget shortfall.
By asking approximately 45 faculty members to give up their reassigned time for spring
and replacing some of the adjunct hours that have been set aside, we have been able
to balance the budget. However, we will have to see if preregistration demand forces
us to add sections.

Dr. Caulfield asked if it was a combination of relinquishing reassigned time and
eliminating special topic courses. Dr. Cochran was unsure of the exact number of
special topic courses that were eliminated. These were typically transferred into
general education's high demand sections. In other cases, special topic courses were
continued because they met a major requirement at the 300-400 level. The
administration tried to listen to each department's unique situation. Although unhappy,
the department Chairs were helpful and cooperative in trying to bring our budget into
balance. This is a serious issue, as we are mandated to keep a balanced budget.

Mr. Dunning asked if any faculty were not asked to give up reassigned time or if
any faculty refused to give up their reassigned time. Dr. Cochran replied that all faculty
with departmental reassigned time have given up their reassigned time for the spring
and are teaching full-time. The only variation is that some faculty teach 11 hours in the
spring because of the four/three credit hour load; nothing can be done about those odd
situations. However, there are faculty who have assignments of program directors and
Chairs; there are a few institutional reassignments. Dr. Cochran stated that we owe a
special thanks to the 45 faculty members whose departmental reassigned time was
suspended for the spring.

VllI. Old BusinessThere was no Old Business.

IX. New BusinessDr. Kormanik asked that Senators hold any New Business until the next meeting.